Thursday 09th of February 2012

First minister says Scots are overcharged for power

Posted on: April 18th, 2008 by Emma Young

Alex Salmond has claimed that he will call for a stop to companies in Scotland being required to pay millions of pounds in transmission charges while their counterparts in England are offered millions of pounds in subsidies.

For instance Scottish and Southern Energy will fork out thirty million pounds this year for its Peterhead gas-powered one thousand five hundred and twenty four megawatt power plant to distribute and sell power through the National Grid. However in England it will receive three million pounds for its one thousand two hundred and thirty four megawatt power station at Seabank in the south-west of England to distribute power through the national grid.

A wind farm in the north of Scotland on the other hand would be required to pay 2.2 million pounds while a wind farm in London one would get 0.6 million pounds.

The rates are calculated on the basis of the distance the power travels to get to its largest market, in this case the south-east of England, and the amount of power that gets wasted along the way by the cables.

The First Minister has said that Scotland has vast amounts of energy but the charges are discouraging the full exploitation of this potential. The First Minister held a meeting with senior executives of Ofgem over the issue of power companies in Scotland having to fork out money just to supply power.

Alex Salmond is also expected to soon take the fight to National Grid due to charging for wind and tidal energy projects.

www.scottish-southern.co.uk

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